Advantages and Disadvantages of RFID Technology

I. RFID Advantages

RFID provides valuable services that can revolutionize companies' tracking. This technology has many benefactors: the military, retailers, suppliers, consultancy companies, technology vendors and consumers. RFID offers a better alternative to bar coding for companies as there is no need for a line of sight to read a pallet, a cardboard box, or an RFID tagged product. RFID tags also contain information that is easy to read and accessible to the reader. RFID also starts automating the supply chain of the company, reducing labor costs, human errors, and product control times.

In 2005, manufacturers and service providers requesting military new bids should be RFID-compliant at four different levels: clothing, tools and weapon repair components and parts. The army requires all boxes and pallets to receive a military shipping label that displays delivery data. The Department of Defense has established RFID Military Compliance Solution, which helps suppliers and manufacturers to meet new military standards for RFID. The program is operated by Avery Dennison Retail Information Services and has been commissioned by RFID Military Compliance Solution. Avery Dennison's retail information services sell RFID labels that are placed near the military shipping labels to comply with the Ministry of Defense's rules.

The US military saves huge amounts of money using active and passive RFID systems. Using RFID in communication and transport systems in Iraq and Afghanistan, the army can diagnose and solve problems much faster than before. Implementing RFID in this area will save the army with half a million dollars this year. The US government has contracted IBM to investigate current military RFID and possible future RFID applications. The military was successful in providing better visibility throughout the supply chain, boosting its productivity and stability.

Retailers and other companies with a demanding supply chain can benefit from the use of RFID in the supply chain in the area. By ensuring that all levels of the supply chain are RFID-capable, it is a big investment. The initial investment and the increase in productivity following the introduction of the companies pay for the investment. Wal-Mart was the first retailer to use RFID in distribution centers and warehouses and encouraged companies to track Wal-Mart's successes.

RFID is very successful against retail companies because it improves productivity, human labor costs, and provides companies with all their products in real time. RFID tags use the Electronic Product Code (EPC), which is the upgrade and replacement of the UPC (Universal Product Code) system. "The EPC has a 96-bit code that contains digits between the manufacturer, the product category, and the individual item. The manufacturers will receive registration numbers and assign them to the products, each of which is a unique item."

is anywhere between twenty-five and fifty cents. In the next five to ten years, it can be reduced to five centimeters. In the near future, labels may have a hundred percent seductive companies to use RFID tags on all the products in the store. Wal-Mart says that as their stores now have RFID, it makes it easier to store stored storages that allow employees to interact with their customers.

Target was able to save investment in RFID implementation, following Wal-Mart's steps Wal-Mart has already opened its way and has been suffering the pitfalls of introducing new technology. At lower implementation costs, many Target vendors have already begun preparing RFID switching, assuming Target follows Wal-Mart. The big retailer's target knows how important it is to deliver real-time data via pallets, boxes and consignments through the supply chain

RFID technology has made Intermec, Inc. a breakthrough in May 2006 with new, flexible and reusable RFID tags. These tags can be written thousands of times; able to handle hazardous chemical exposure and withstand temperatures of -50 ° Fahrenheit and 250 ° Fahrenheit. In October 2006, Intermec released a new version of the robust, reusable RFID tag, including a broadband antenna that can be used anywhere in the world on any surface.

RFID has made the business world a smaller place, even companies such as Wal-Mart, who are very large and have a large integrated supply chain. RFID enables companies to become more efficient with time and space. Companies that combine some new supply chain technologies with RFID technology can achieve great results. Combining automatic pick-up and RFID would reduce the need for energy, the time needed to move pallets and boxes to a warehouse, and the time it takes to deliver pallets to their destination. The company's supply chain is designed to reduce the time needed to make it more productive by automating as many supply chains as possible. It reduces human errors and machines run 24 hours a day and spend less on human labor. THE

RFID application for a large company such as Wal-Mart or Target, as well as smaller retail outlets, provides a better shopping experience with more in-stock goods and a well-informed business.

The RFID market is booming and many technology companies have acquired the game in manufacturing RFID components and systems. In many cases, the RFID components and systems manufacturer allows you to become a consulting firm for technology. Hewlett Packard (HP) is one of the largest companies developing RFID systems. HP aims to be as simple and affordable as possible for RFID technology companies. HP has gained experience in the RFID field as they were early adopters of technology and have been successfully integrated into their business. HP started with two major customers, Hasbro (for children's toys) and Conros (a major Wal-Mart supplier). Hewlett Packard has created two of California's and one Taiwan's RFID Centers for Excellence that showcase the new potential uses of technology and how to implement business. Several centers are being opened worldwide, including the United Kingdom, Singapore and Tokyo RFID Centers for Excellence

The RFID market will cost approximately $ 1 billion in 2006 and will have variable estimates of market growth potential. Estimation of RFID market size may differ anywhere in 2008, IDC is $ 1.3 billion and Yankee Group $ 4.2 billion. As shown in Figure 1 of this appendix, most of the industry consists of the sale of RFID hardware, labels, readers and other physical products. Approximately 20-25% of the market consists of consulting activities and the last 5% consists of RFID software. The two largest companies focus on RFID manufacturing and consulting.

The biggest challenge for manufacturers and consultants is the reliability and durability of RFID systems and products. It is difficult to simulate the wear that a product experiences over time. HP tests a benchmark for RFID products and has intensively tested RFID to ensure durability and quality. HP is a competitor in IBM, AMR Research as the market leader in RFID. IBM has more than eleven years of experience with RFID and was an early use of HP, RFID technology. The advantage of IBM over HP is world-wide consulting services and powerful networking capabilities. IBM's services promise more than HP's RFID systems, mainly because of IBM's consulting expertise. IBM is working with companies to find the most suitable ways to implement RFID and try to maximize ROI, reducing a man's post-track shifts, enabling them to concentrate on value-added manufacturing activities. IBM also focuses on other ways to improve ROI, including one-time savings over running costs of $ 230,000, ongoing production lines, better customer service, providing real-time information about products and less errors and delays in human error because. 19659002] RFID started to stand up when Wal-Mart and Target companies and the US military demanded that its first 100 suppliers adopt RFID technology. Many suppliers were not ready for this step, which is a step that would completely re-install their current operation at a high cost for the vendor. There were some suppliers who welcomed the change in technology and have begun implementing RFID before Wal-Mart and the US military are waiting for their suppliers to accept the new technology. Wal-Mart demanded that its top 100 suppliers be ready for RFID in January 2005 and twenty-three additional suppliers volunteered to change RFID to Wal-Mart's surprise. There is a new generation of labels that reached the market in 2005, the so-called Gen 2 Standard, which makes RFID more attractive to service providers who do not have an RFID system. Gen 2 RFID Improves RFID's First Generation by Increasing Read Time Increasing Reading Ranges and Better Reading Labels

Manufacturers and manufacturers will realize the benefits of RFID implementation in their organization to streamline parts of their operation. One of the most important factors of RFID implementation is the return on investment. Suppliers see an increase in their return as the number of human hours decreases, human errors are reduced and interoperability increases. RFID increases the visibility of suppliers so they can do their job in real time by ensuring that the correct package is sent to the correct location. It saves money in the long run for manufacturers and suppliers because RFID saves time to inventory and product tracking. For RFID-enabled suppliers and manufacturers, it is advantageous to customize products within a shorter time. Smaller suppliers and manufacturers will be more difficult to implement RFID, as costs cost between $ 100,000 and $ 5,000 for technology, but RFID

is used by companies to reduce costs. invaluable information. For Wal-Mart suppliers, readers are set up at the back door, so carriers know whether shipping has increased visibility for both organizations. The second reader is located at the entrance of the sales floor so the vendor can see what's in his hand at the sales level and in the warehouse. This allows the supplier to see which products are sold more than others to be substitutable and allows the supplier to develop more accurate sales forecasts. The second advantage of RFID is that the promotions to which the distributors spend a lot of money on the set-up often remain in the warehouse for too long or are placed incorrectly. Distributors and distributors now ensure that their promotions are properly handled. Suppliers and Manufacturers Potentially Save Money on Production Costs While Making Money on Personalized Products

Consumers should be the ultimate winner as RFID is implemented in the supply chain of the company. In the long run, stores will save money throughout the supply chain, thus reducing the cost of consumers. Consumers should also expect that companies with RFID need more useful and informed services. These companies now have real-time data sharing with the customer. A consumer complaint about retail stores has always meant that there are too many stocks; however, in the number of such stores at the RFID site, the number of items in the inventory decreases considerably. RFID tags with certain products can make people's lives much easier, such as a microwave reader, and recognize the stuffed food label and automatically absorb it in accordance with the label's instructions. It also helps to protect the environment because companies will use the resources more effectively, benefiting everyone. Once RFID tags can be used for food products, it is much easier to recall within a certain element and save lives.

Consumers use RFID day after day, and many people do not recognize the benefits of technology. The contactless payment development technology, the card used includes a tag and the payment area contains a reader. Mobile and Exxon use "Speedpass" as an untapped form of payment that allows customers to pay for the card before the reader for gas or for anything in the convenience store. Visa and Mastercard are two of the biggest developers of technology, claiming that everyone will benefit the business. Allows people to pre-allocate money to a card (or debit or credit) that reduces waiting time at the checkout station and increases their loyalty to companies offering such functionality. Another use of smart cards is a keyless entry, which becomes popular in America with just one card and passes through the sensor through the sensor. RFID is a consumer-friendly technology that saves time and convenience for traditional barcodes, credit cards and keys.

RFID has a number of advantages over traditional ways of encoding pallets, boxes, and products. Allows reading non-linear reading of the tag that stores all product information. RFID reduces human labor costs and human errors through the supply chain by saving companies' money and reducing theft in warehouses and warehouses. RFID can save life when it is recalled and tagged the tagged food or product, it would be easier to collect all units.

II. Disadvantages

RFID has been in existence for more than fifty years, but in the last five years, technology has been rapidly evolving and deploying, which has attracted people's awareness and understanding of technology. Although there are many potential benefits for RFID, there are many pitfalls. Any level that can benefit from RFID can also gain negative benefits from technology.

US soldiers have been using the technology of early employees for more than ten years in their limited area of ​​operation. In 2003, the use of their technology was further enhanced by the fact that each supplier should place an RFID tag on all pallets, cartons and bulky goods in the army. The biggest problem with military faculties is security. Full product information on the label will help the enemy of the United States easily gather information about a label. This could lead to the loss of American soldiers or even American civilians when the bad product is in the wrong hands. Labels could inform their enemies of potential military weaknesses and strengths and show them how they can attack us at the weakest points.

Large companies such as Wal-Mart and Target, who use RFID, face many potential problems with technology. RFID has no proven infrastructure, which makes it difficult for suppliers to keep up with their RFID skills for these companies. If suppliers can not effectively implement RFID in their business, retailers can not fully view their supply chain. If retailers can not fully obtain their data across their supply chain, the problems they are trying to solve will remain problems. Out-of-stock products, first-ever products, and recent products continue to pose problems for these big retailers.

EPCGlobal is the launch of RFID's international standardization body. The International Organization for Standardization (ISO) has not yet approved and there is still no global frequency band. While 900 MHz is the best frequency thanks to its long reading range, 13.56 MHz is still delayed by standardizing RFID global frequency. Because of the high costs of implementing RFID, many medium-sized and smaller retailers have not accepted the technology. The short-term outlook for companies using RFID is not impressive, though long-term benefits will be achieved.

Data protection issues for RFID and retailers are the number one. As long as labels are placed on pallets and cartons only, retailers do not have specific information about the consumer. However, when the RFID tag prices fall, companies such as Wal-Mart and the Target Plan use RFID tags on each product to track consumer shopping habits and other information that consumers want private individuals to keep. This forced data protection issues to force Benetton to stop his experimental RFID system. A tag was embedded in clothing articles to stop theft, to determine consumer shopping habits and keep them at an acceptable level. Data protection groups such as Supermarket Privacy Invasion (CASPIAN) consumers fought with RFID-enabled companies to track consumer behavior. A study has shown that up to 78% of America has opposed RFID, which was built exclusively on data protection issues. In the future, it will be difficult for companies to label individual items without public indignation without the protection of public privacy

Consumers have the greatest disadvantage for any other organization involved in RFID technology. There are five privacy concerns that consumers need to try to protect themselves: hidden placement of labels, unique object identifiers worldwide, bulk data collection, hidden readers, and custom tracking and profiling. Hidden placement of labels is an easy way for companies to get information from consumers. The consumer can feel safe in purchasing a product that does not know the RFID tag embedded in his clothing. These labels could theoretically track a person around the world if there are readers in that place around the world. You can also embed personal information in these labels by providing information that is detailed in terms of your history. Prada and Swatch used embossed labels in their clothing, and Benetton did so, but the Benetton boycott was successful and the labels were removed. There are no laws against embedded labels and only California and Utah have made a formal request to change the situation

Companies using RFID can compile a large amount of data on consumers including product-based love and unwanted products, history. RFID facilitates data gathering and correlations. If a company has more than one business, you can combine data between companies and create new data about buying habits.

Hidden readers violate people's privacy, just like hidden tags. Gillette and Accenture introduce "silent trade" that incorporates labels into people's products and readers at strategic locations without the knowledge of consumers. These companies have been experimenting at different reading locations, from secret carpet locations to shelves and even to floor coverings. Readers can be placed on the street lights, wherever people have to go, and instantly send all the information embedded in the label to the reader. If that were to happen, privacy would not be possible because you would never know if the products contained labels and you never know when they are near the reader.

The disadvantages of RFID are the unproven way of data protection, technological imperfections, technology costs, and RFID manufacturing. The government and companies are the two groups that are most concerned about privacy issues. Hidden tags and readers threaten to lose the human mystery and offer a world where people only see, feel and hear what the government and the big corporation want from people.

III. The Future of RFID

The future of RFID is uncertain, but technology remains here. Companies have to overcome many obstacles to make the technology feasible. Data protection issues persist, although the cost of RFID systems is decreasing. In order for RFID to succeed, companies need to work with data protection teams to set up a fair method of deploying RFID without disposing of their customers.

Technology will continue to develop for RFID and many new applications will be implemented. Automation will be a side effect of RFID development, in the supply chain and in everyday activities. There are already available offline forms of payment and the automatic keypad to open the doors. RFID tags installed by readers on roads and freeways will alert the authority if they violate the law. Supermarkets will ultimately be able to implement their shopping cart system if prices fall lower. Fresh foods, metals and liquids will all be RFID-compliant in the near future. If privacy concerns are not closely monitored, people are tagged and will always be someone who watches and analyzes the decision of everybody.